Trump Blames Democratic Midterm Gains for Massive Stock Market Slump
Wall Street plummeted as the Nasdaq saw its worst session. Donald Trump blames Democratic midterm victories for the crash and fears AI regulation.
POLICY WIRE — Washington, D.C. — President Donald Trump linked a sharp decline in equity markets on Thursday to the Democratic success in the midterm elections, a claim supported by market data.
In a post on Truth Social following the market close, the president stated that the market experienced one of its worst performances due to the election outcomes. He expressed sadness over the situation, noting that significant effort had gone to reach record heights before the recent downturn impacted 401(k) accounts.
Trump further asserted that the losses were the fault of Democrats rather than Republicans, promising that his party would return even stronger in the future.
While his online commentary often contains hyperbole, the significant Democratic gains on Tuesday in traditionally Republican regions had a tangible impact on Wall Street.
The Nasdaq 100, which tracks tech giants like Nvidia, Apple, and Alphabet, suffered its worst day since the COVID-19 pandemic in March 2020. According to Bloomberg, the index fell by 6.4 percent, resulting in a $2.3 trillion loss in market value.
Downward pressure continued through Thursday as investors worried a Democrat-led Congress starting in January would implement stricter oversight on artificial intelligence.
The Nasdaq Composite fell 5.52 percent, while the S&P 500 slid 4.36 percent, and the Dow Jones Industrial Average plummeted by 1,833.06 points.
Trump has historically been a vocal advocate for AI, which he frequently refers to as Super Intelligence. In September, he emphasized the importance of the United States leading China in the field, stating that the leader in AI would hold the ultimate advantage.
Upon taking office, the president rescinded a 2023 executive order from Joe Biden that had required AI developers to share safety test data with the government if their systems threatened national security or public health.
With Republicans losing seats in the House, Senate, and gubernatorial races, there is concern that Democrats will limit the growth of data centers necessary for AI. Senator Bernie Sanders called for a national halt on such centers, arguing that the public does not want large tech leaders to harm the environment or jobs.
Tech mogul Elon Musk, who contributed $445 million to Republican efforts, also saw his interests impacted by the broader market volatility.
Reporting by Policy-Wire (PW)
